Bharat Heavy Electricals Limited

NSEI:BHEL Stock Report

Market Cap: ₹713.1b

Bharat Heavy Electricals Valuation

Is BHEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BHEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹41.23
Fair Value
396.8% overvalued intrinsic discount
17
Number of Analysts

Below Fair Value: BHEL (₹204.84) is trading above our estimate of fair value (₹41.23)

Significantly Below Fair Value: BHEL is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BHEL?

Key metric: As BHEL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BHEL. This is calculated by dividing BHEL's market cap by their current earnings.
What is BHEL's PE Ratio?
PE Ratio137.4x
Earnings₹5.19b
Market Cap₹713.13b

Price to Earnings Ratio vs Peers

How does BHEL's PE Ratio compare to its peers?

The above table shows the PE ratio for BHEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average98.2x
SUZLON Suzlon Energy
65.5x37.6%₹749.5b
POWERINDIA Hitachi Energy India
165.9x54.2%₹520.6b
522275 GE Vernova T&D India
90.1x32.5%₹439.7b
500002 ABB India
71.3x15.6%₹1.2t
BHEL Bharat Heavy Electricals
137.4x70.7%₹713.1b

Price-To-Earnings vs Peers: BHEL is expensive based on its Price-To-Earnings Ratio (137.4x) compared to the peer average (98.2x).

Price to Earnings Ratio vs Industry

How does BHEL's PE Ratio compare vs other companies in the IN Electrical Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
504058 Indo National
3xn/aUS$42.68m
No more companies available in this PE range
BHEL 137.4xIndustry Avg. 44.1xNo. of Companies14PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BHEL is expensive based on its Price-To-Earnings Ratio (137.4x) compared to the Indian Electrical industry average (44.1x).

Price to Earnings Ratio vs Fair Ratio

What is BHEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BHEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio137.4x
Fair PE Ratio129.6x

Price-To-Earnings vs Fair Ratio: BHEL is expensive based on its Price-To-Earnings Ratio (137.4x) compared to the estimated Fair Price-To-Earnings Ratio (129.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BHEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹204.84
₹212.06
+3.5%
47.5%₹425.00₹72.00n/a17
Jan ’26₹233.23
₹228.06
-2.2%
48.2%₹425.00₹72.00n/a17
Dec ’25₹251.09
₹228.06
-9.2%
48.2%₹425.00₹72.00n/a17
Nov ’25₹241.97
₹235.12
-2.8%
47.7%₹425.00₹72.00n/a17
Oct ’25₹280.45
₹241.69
-13.8%
48.4%₹425.00₹72.00n/a16
Sep ’25₹290.55
₹233.38
-19.7%
48.6%₹425.00₹72.00n/a16
Aug ’25₹308.50
₹213.76
-30.7%
54.7%₹425.00₹72.00n/a17
Jul ’25₹302.40
₹207.72
-31.3%
53.4%₹400.00₹72.00n/a18
Jun ’25₹298.90
₹206.72
-30.8%
54.3%₹400.00₹55.00n/a18
May ’25₹281.70
₹168.00
-40.4%
48.4%₹301.00₹55.00n/a17
Apr ’25₹253.75
₹160.32
-36.8%
51.2%₹300.00₹38.00n/a19
Mar ’25₹235.30
₹156.68
-33.4%
49.3%₹300.00₹38.00n/a19
Feb ’25₹227.50
₹127.33
-44.0%
59.8%₹300.00₹34.00₹200.0218
Jan ’25₹198.15
₹101.58
-48.7%
63.3%₹230.00₹34.00₹233.2319
Dec ’24₹170.50
₹90.80
-46.7%
53.5%₹165.00₹34.00₹251.0920
Nov ’24₹121.55
₹87.45
-28.1%
56.1%₹165.00₹34.00₹241.9720
Oct ’24₹131.00
₹83.85
-36.0%
59.1%₹165.00₹34.00₹280.4521
Sep ’24₹136.15
₹72.36
-46.9%
54.8%₹158.00₹34.00₹290.5519
Aug ’24₹104.70
₹64.64
-38.3%
45.7%₹125.00₹32.00₹308.5020
Jul ’24₹87.65
₹61.49
-29.8%
43.9%₹110.00₹32.00₹302.4020
Jun ’24₹82.00
₹59.62
-27.3%
42.3%₹110.00₹32.00₹298.9019
May ’24₹78.40
₹56.20
-28.3%
45.4%₹110.00₹30.00₹281.7019
Apr ’24₹70.05
₹51.58
-26.4%
42.3%₹100.00₹30.00₹253.7518
Mar ’24₹72.80
₹51.58
-29.1%
42.3%₹100.00₹30.00₹235.3018
Feb ’24₹75.60
₹50.50
-33.2%
43.2%₹100.00₹30.00₹227.5019
Analyst Price Target
Consensus Narrative from 17 Analysts
₹212.10
Fair Value
3.4% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 18:24
End of Day Share Price 2025/02/06 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Bharat Heavy Electricals Limited is covered by 63 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Amol RaoAnand Rathi Shares and Stock Brokers Limited
Puneet BambhaAngel Broking Private Limited